Despite lingering global concerns, businesses remain optimistic the economy will sustain its growth this year.
George Barcelon, president of the Philippine Chamber of Commerce and Industry in a text message said the economy will maintain a healthy pace in the first half of 2023 but will encounter headwinds in the second semester.
Barcelon is confident the country’s dollar remittances and the rebound in the domestic economy will weather the interest rates hikes mirroring US and European’s action to mitigate inflation.
“The issue of concern is (that there is) no solution in sight on high food prices which will heighten the clamor for big wage adjustment. This will have a vicious cycle on inflation and (will) impact the competitiveness of the export sector,” Barcelon said.
“As such the outlook on both job creation and sustainability during the second half may encounter headwinds,” he added.
Sergio Ortiz-Luis Jr., president of the Philippine Exporters Confederation Inc., shared Barcelon’s optimism, particularly on exports.
“Despite the headwinds and uncertainties due to inflation, fluctuating fuel costs and the China’s continuing battle against COVID (new coronavirus disease 2019) surges, we still remain optimistic about the export sector whose performance has been strengthening,” Ortiz-Luis said in a text message.
While government policies and private sector programs are in place and designed to meet global and domestic disruptions, Ortiz-Luis said it is critical for government to address regulatory burdens on the private sector.
He cited a recent regulation requiring the monitoring of shipments as an example.
Francis Chua, founding chairman of the International Chamber of Commerce Philippines, said prospects are rosy as the economy has fully reopened and expressed hopes President Ferdinand Marcos Jr.’s recent foreign trips will generate more foreign direct investments.
Henry Lim Bon Liong, president of the Federation of Filipino-Chinese Chamber of Commerce and Industry Inc. told the Pandesal Forum last week the group sees the economy growing by 6.5 to 7.5 percent this year.
Lim said recovery will continue despite many gloomy forecasts about world economic recession due to the global inflation, high interest rates and the Ukraine- Russia conflict.
“ We believe the Philippine economic and demographic fundamentals are positive,” Lim said. – Irma Isip
